I take a conservative, evangelical, economistical look at things. I will be posting intermittently, for reference rather than daily reading.
My Wordpress site from before 30 September 2007 is at http://rasmusen.org/x. It is searched from the search engine below(not above).

Friday, December 26, 2008

Obama and Illegal Campaign Contributions

Obama didn't use federal matching funds. This meant not only that he did not have to limit his spending; he also did not have to be automatically audited. Auditing Obama
Will the FEC examine the president-elect's campaign finances?
by Hans A. von Spakovsky. It seems likely he received many millions in illegal contributions-- probably the greatest amount in American history. I wonder what the remedy should be? We don't want to overturn the election, since its result would not have changed even with $200 million in illegal contributions.

The public funding program automatically requires an audit of any candidate that receives public funds, so John McCain's campaign will be audited without question. Since Obama is the first candidate to refuse public funding in the general election since the program started, it would be very odd if Obama avoided an audit because of his ability to raise extraordinary funds from untraceable sources.

The federal campaign finance law requires campaigns to report the name, address, occupation and employer of every contributor who gives more than $200. Yet according to the Washington Post, National Journal and Newsmax, the Obama campaign took (or failed to take) steps to ensure it was not alerted to problem donations.

Some of the acts and omissions are so cavalier, it's hard to believe they weren't intentional. For example, the Post reported that the Obama campaign accepted prepaid credit cards that are untraceable, and National Journal reported that the campaign didn't implement a verification procedure to even match the names of contributors using regular credit cards with the names and addresses of the credit card holders.

When asked about it, the Obama campaign said such matching wasn't "available in the credit card processing industry." That is completely untrue--such verification procedures are offered by companies that service credit-card transactions, as well as by banks and telecommunications companies (and was standard procedure for the McCain campaign).

In contrast to the McCain campaign, the Obama campaign also refused to divulge the names of the millions of small-time donors who contributed (many repeatedly) under $200 to the campaign (totaling $218 million), saying it was "too difficult." However, as Neil Munro of National Journal reported, there are "few technical obstacles to sorting and identifying small-scale donors."...

...In contrast, the Obama campaign had no controls whatsoever to prevent illegal foreign contributions by noncitizens. An investigation by Newsmax estimated that anywhere from $13 million to $63 million may have been received by the Obama campaign from overseas credit cards or foreign currency purchases (a red flag for possibly illegal contributions). The FEC itself has flagged 16,639 potential foreign donations to Obama's campaign. When confronted with this, the campaign started collecting passport numbers from foreign donors, a completely useless procedure since no effort was made to verify those numbers with the State Department to see if they were even valid.

Selected Archive Topics >

I've set up this blog for myself, as a commonplace book, with the idea that it might
also be useful for outside readers. That is why the topics are idiosyncratic. I see that most of my readers are directed here
by Google searching rather than being regular readers.

I will delete rude comments, and will give less leeway to anonymous comments than to signed ones. I will for now at least
allow stupid and ill-informed comments, though other readers don't enjoy them unless they are so ignorant as to be funny.

I will revise my posts freely, usually without any note that they've been revised. If I make an important mistake in a post that I think
people might refer to, I will note the mistake and correction. But I'm not trying to make this a historical record. In fact, I'd like to merge posts on the same topic
and delete posts not of interest a year later, except that I never get round to doing that.